Interagency Agreement (IAA)

An Interagency Agreement (IAA) is a formal documented arrangement between two federal agencies, typically a "requesting agency" that needs goods, services, or assistance, and a "servicing agency" that provides them, established under specific statutory authorities to allow one agency to use another's contracting vehicles, capabilities, or resources for authorized purposes.

What is an IAA?

IAAs are a major feature of the federal government's internal economy. Rather than each agency independently competing and awarding contracts for identical needs, IAAs allow one agency to leverage another agency's established contracts, subject-matter expertise, or operational capabilities. The Economy Act (31 U.S.C. § 1535) is the primary statutory authority for most IAAs, allowing one agency to order goods or services from another when it is more economical or efficient than commercial procurement. Other IAA authorities include specific program statutes that authorize specific types of inter-agency sharing. Common IAA use cases include: agencies ordering IT services through DISA's contract vehicles; civilian agencies using DoD logistics and acquisition capabilities; multiple agencies sharing a common enterprise system operated by one "lead agency"; and research agencies funding work performed at another agency's laboratory. IAAs must comply with a standard format (form IAA or SF form depending on type), fiscal year limitations, Economy Act determination requirements, and appropriation restrictions. For contractors, IAAs affect the competitive landscape, a contractor must win work from the servicing agency, which may then deliver it to multiple requesting agencies under IAA authority.

Why IAAs matter for government contractors

Contractors who win work from a servicing agency that operates under multiple IAAs may see their contract performance volume significantly exceed what was visible in the original solicitation. Understanding which agencies act as servicing agencies for specific capability domains helps contractors identify strategic contract vehicles that have broad multi-agency reach.

Example

An enterprise software company wins a contract with the General Services Administration to operate a shared financial management system. GSA establishes IAAs with six other federal agencies that need similar financial management capabilities. Through the IAAs, all six agencies access the system that the contractor operates and maintains. The contractor's revenue from this single contract vehicle grows as additional agencies join through new IAAs with GSA.

Frequently Asked Questions

What is the Economy Act determination?

The Economy Act requires the head of the requesting agency (or a delegatee) to determine that the inter-agency approach is more economical or that the servicing agency has the necessary facilities and expertise to provide the required goods or services. This determination must be in writing and on file before the IAA is executed.

How do IAAs interact with competition requirements?

IAAs under the Economy Act generally satisfy competition requirements because the ordering agency is using an existing competitively awarded contract from the servicing agency, or is obtaining services from another government entity that is not subject to competition requirements. However, the underlying servicing agency contract must have been competitively awarded.

What is a MIPR and how does it relate to an IAA?

A Military Interdepartmental Purchase Request (MIPR) is a specific instrument (DD Form 448) used within DoD to transfer funds between military components. IAAs are the broader inter-agency mechanism; MIPRs are the intra-DoD equivalent for fund transfers. Both allow one government entity to use another's contracting capabilities.

Can contractors initiate or influence IAAs?

Contractors cannot be parties to an IAA (which is a government-to-government instrument), but they can position themselves to benefit from IAAs by winning contracts with agencies that are likely to become servicing agencies, or by working with agencies to identify where an inter-agency approach could be more efficient and promoting that approach as part of capture strategy.